Tax increase not yet reflected in Tuesday’s oil price hike

MANILA: Oil companies announced a hike in fuel prices on Tuesday, January 8, but clarified that this increase is not yet due to the Tax Reform for Acceleration and Inclusion (TRAIN) law’s second tranche.

In separate messages, oil firms said they will increase diesel prices by PHP0.70 per liter, PHP0.80 per liter for gasoline, and PHP0.40 per liter for kerosene.

This price increase puts to an end 12 straight weeks of nearly uninterrupted price rollbacks for most petroleum products, which began on October 15 last year.

Oil industry sources said traders will be monitoring the outcome of trade talks between the United States and China this week, which will take place amid a notable decline in supply — causing world oil prices to inch up.

Brent crude increased to USD57.41 per barrel, up by 9.98 percent from last week’s price.

In a briefing Monday, Department of Energy (DOE) Undersecretary Felix William Fuentebella said only 3 percent or 268 out of 8,600 gas stations in the country reported that they already implemented the second tranche of excise tax on petroleum products. Six of these gas stations are in Metro Manila.

Fuentebella said that there are factors to be considered for the early implementation of the excise tax of some retailers, which include the storage capacity of a gas station and the turnover of old stocks.

The DOE noted that the impact of the second tranche of the oil excise tax will largely be felt by consumers between January 15 and February 1. (PNA)